Mercer Tool Simplifies Equity Exchange Programs

The tool provides employees with a way to compare the choices in their stock option program, including restricted stock units (RSUs) or other alternative investments; model various scenarios based on the offerings; and enable the decision-making process, according to a press release.

Key features of the equity choice tool include personalized stock option and RSU data, calculators, and educational information, Mercer said. Individuals can also model various scenarios specific to their own portfolio to help them choose the most appropriate exchange option.

Employers can “capture” and implement employee decisions to allow for a completely automated conversion experience.

A recent Mercer survey found that more than half of public companies have more than 75% of their outstanding stock options underwater. More than half of these companies have implemented or are considering a re-pricing or exchange program to address employees’ underwater options (see “Survey Finds Companies Adjusting Executive Pay Programs“).